Legal and judicial ethics by Agpalo

8/9/2019 Legal and judicial ethics by Agpalo

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Chapter VIII

LAWYERS FIDUCIARY OBLIGATION

A. Efects o !"c#ar$ o%'at#o(). Ge(era&&$

a. The *e&& esta%she! r"&e that the re&at#o( o attor(e$ a(! ce(t #sh#'h&$ !"c#ar$ a(! str#ct&$ co(!e(t#a& re+"#r#(' "t,ost 'oo! a#th-

&o$a&t$- !et$ a(! !#s#(tereste!(ess o( the part o the attor(e$REASON

To re,o/e a&& s"ch te,ptat#o( a(! to pre/e(t e/er$th#(' o that

0#(! ro, %e#(' !o(e or the protect#o( o the ce(t.1. Dea('s *#th ce(t c&ose&$ scr"t#(#2e!

a. Attor(e$3ce(t re&at#o( #s s"%4ect to the c&osest 4"!#c#a& scr"t#($REASON

It #s the co"rts !"t$ to &oo0 #(to !ea('s %et*ee( attor(e$s a(!

the#r ce(ts a(! to '"ar! a(! protect the &atter ro, a($ "(!"e

co(se+"e(ces res"&t#(' ro, a s#t"at#o( #( *h#ch the$ ,a$ sta(!"(e+"a&.

%. Attor(e$3re&at#o(sh#p #s h#'h&$ a/ora%&e to the ce(t

REASON

No pres",pt#o( o #((oce(ce or #,pro%a%#t$ o *ro(' !o#(' #s

co(s#!ere! #( a/or o the &a*$er.

B"r!e( o proo rests "po( the attor(e$ to sho* that the

tra(sact#o( #s a#r- that #t *as e+"#ta%&e a(! 4"st- that #t !#! (ot procee!

ro, "(!"e #(5"e(ce a(! that the propert$ so ac+"#re! !oes (ot

%e&o(' co(str"ct#/e&$ to the ce(t.

6. A%"se o ce(ts co(!e(cea. A($ a!/a(ta'e !er#/e! %$ a &a*$er as a res"&t o a%"se o the

ce(ts co(!e(ce 'e(era&&$ INURES to the %e(et o the ce(t.7. Re%ates a(! co,,#ss#o(s

a. A &a*$er sha&& (ot- *#tho"t the "&& 0(o*&e!'e a(! co(se(t o the

ce(t- accept a($ ee- re*ar!- cost o,#ss#o( #(terest- re%ate or

or*ar!#(' a&&o*a(ce or other co,pe(sat#o( *hatsoe/er re&ate! to

h#s proess#o(a& e,p&o$,e(t or, a($o(e other tha( h#s ce(t.REASON

Th#s r"&e #s !es#'(e! to sec"re the attor(e$s *ho&e hearte!!et$ to the ce(ts ca"se a(! to pre/e(t that s#t"at#o( #( *h#ch

the rece#pt %$ h#, re%ate or co,,#ss#o( ro, a(other o(

co((ect#o( *#th the ce(ts %"s#(ess ,a$ #(terere *#th the "&&

!#schar'e o h#s !"t$ to h#s ce(ts.8. A &a*$er sha&& (ot %orro* ro,- (or &e(! ,o(e$ to- ce(t

a. R"&e )9.:7 o the co!e


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#. ;A &a*$er sha&& (ot %orro* ,o(e$ ro, h#s ce(t "(&ess the

ce(t #(terest are "&&$ protecte! %$ the (at"re o the case or

%$ #(!epe(!e(t a!/#ce. Ne#ther sha&& a &a*$er &e(! ,o(e$ to

a ce(t eroh#%#ts a &a*$er ro, %orro*#(' ,o(e$ ro, h#s

ce(t.a. REASON

#. >re/e(t the &a*$er ro, ta0#(' a!/a(ta'e

o h#s #(5"e(ce o/er the ce(tE?CE>T *here the ce(ts #(terest are "&&$

protecte! %$ the (at"re o the case he #s

ha(!(' or the ce(t or %$ #(!epe(!e(t

a!/#ce ro, a(other &a*$er- he sho"&!

(ot a%"se the ce(ts co(!e(ce %$!e&a$#(' pa$,e(t

1. >roh#%#ts a &a*$er ro, &e(!#(' ,o(e$ to the ce(t-

E?CE>T *he(- #( the #(terest o 4"st#ce- he has to

a!/a(ce (ecessar$ e


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#. R"&e )9.:6 o the C>R pro/#!es that ;a &a*$er sha&& !e/er the

"(!s a(! propert$ o h#s ce(t *he( !"e or "po( !e,a(!. TO

BE CONTINUEDC. Restr#ct#o( a'a#(st %"$#(' ce(ts propert$

a. >"rchas o ce(ts propert$ #( t#'at#o(#. The &a* ,a0es the #(capac#t$ o the attor(e$ to ac+"#re h#s

ce(t propert$ #( t#'at#o( a(! ABSOLUTE a(! >ERANENT.

>roh#%#t#(' ro, p"rchas#('- e/e( at a p"%c or 4"!#c#a& a"ct#o(-

e#ther #( perso( or thro"'h the ,e!#at#o( o a(other- a($

propert$ or #(terest #(/o&/e #( a($ t#'at#o( #( *h#ch he ,a$

ta0e part %$ /#rt"e o h#s proess#o(.). REASON

a. It #s #(te(!e! to c"rta#& a($ "(!"e #(5"e(ce o the

&a*$er "po( h#s ce(t o( acco"(t o h#s !"c#ar$

a(! co(!e(t#a& re&at#o( *#th h#,.%. Appcat#o( o r"&e

#. The r"&e or%#!!#(' a( attor(e$ ro, p"rchas#(' h#s ce(tspropert$ or #(terest #( t#'at#o( #(/o&/es o"r e&e,e(ts). There ,"st %e a( attor(e$3ce(t re&at#o(sh#p1. The propert$ or #(terest o the ce(t ,"st %e #( t#'at#o(6. The attor(e$ ta0es part as co"(se& #( the case7. The attor(e$ %$ h#,se& or thro"'h a(other p"rchase s"ch

propert$ or #(terest !"r#(' the pe(!e(c$ o the t#'at#o(Note

The prese(ce o a&& the ore'o#(' e&e,e(ts ,a0es

the ac+"#s#t#o( %$ a &a*$er o h#s ce(ts propert$ #(

t#'at#o( /#o&at#/e o the &a* a(! re(!ers h#s co(!"ct

eth#ca&&$ #,proper.c. Where r"&e #(appca%&e

#. The a%se(ce o a($ o the e&e,e(ts co(st#t"t#/e o the r"&e

or%#!!#(' a &a*$er ro, p"rchas#(' h#s ce(ts propert$ #(

t#'at#o( re(!ers the proh#%#t#o( #( appca%&e.). Th"s- #t ha! %ee( he&! that the proh#%#t#o( app&$ *here

the propert$ p"rchase! %$ a &a*$er *as (ot #(/o&/e! #(

t#'at#o(- *here the sa&e too0 p&ace %eore #t %eca,e

#(/o&/e #( the s"#t- *here the p"rchaser o the propert$ #(

t#'at#o( *as a corporat#o( e/e( tho"'h the attor(e$ *as

a( ocer thereo- or *here the sa&e too0 p&ace ater the

ter,#(at#o( o the 'at#o(.1. I at the t#,e o the p"rchase the attor(e$3ce(t

re&at#o(sh#p has ter,#(ate!- the proh#%#t#o( !oes (ot

app&$ #( the a%se(ce o ra"! or the "se o co(!e(t#a&

#(or,at#o( ac+"#re! !"r#(' the pre/#o"s e,p&o$,e(t.D. Efects o proh#%#te! p"rchase


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a. The p"rchase %$ a( attor(e$ o h#s ce(ts propert$ or #(terest #(

t#'at#o( #s a %reach o proess#o(a& eth#cs. The attor(e$- #( a(

appropr#ate case- ,a$ %e !#sc#p(e! or s"ch ,#sco(!"ct.%. The tra(sact#o( *#&& %e NULL a(! VOID a% #(#t#o

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Legal and judicial ethics by Agpalo